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(1)After section 45 of the School Standards and Framework Act 1998 there is inserted—
(1)For the purposes of this Part, a local education authority’s “LEA budget” for a financial year is the amount appropriated by the authority for meeting all expenditure by the authority in that year of a class or description prescribed for the purposes of this subsection.
(2)For the purposes of this Part, a local education authority’s “schools budget” for a financial year is the amount appropriated by the authority for meeting all expenditure by the authority in that year of a class or description prescribed for the purposes of this subsection (which may include expenditure incurred otherwise than in respect of schools).
(3)For the purposes of this Part, a local education authority’s “individual schools budget” for a financial year is the amount remaining after deducting from the authority’s schools budget for that year such planned expenditure by the authority in respect of that year as they may determine should be so deducted in accordance with regulations.
(4)Regulations under subsection (3) may—
(a)prescribe classes or descriptions of expenditure which are authorised or required to be deducted from an authority’s schools budget;
(b)provide, in relation to any prescribed class or description of expenditure specified in the regulations, that such expenditure may only be deducted subject to either or both of the following, namely—
(i)such limit or limits (however framed) as may be specified by or determined in accordance with the regulations, and
(ii)such other conditions as may be so specified or determined.
(5)Before the end of January in any financial year, a local education authority shall—
(a)determine the proposed amount of their schools budget for the following financial year, and
(b)give notice of their determination to the Secretary of State and to the governing body of every school maintained by the authority.”
(2)In section 45 of that Act (maintained schools to have budget shares), in subsection (1) for “46” there is substituted “45A”.
(3)Section 46 of that Act (determination of LEA’s local schools budget and individual schools budget) shall cease to have effect.
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